Bitcoin Price Drops Below $100,000 Support, Analysts Share Cautious Outlook

The cryptocurrency market’s New Year rebound has taken a hit, with Bitcoin (BTC) dropping from the recently reclaimed $100,000 support level to the $94,000 territory. This decline has sparked concerns among investors and analysts, who are now sharing their cautiously bullish outlook for the flagship cryptocurrency.

Whales Accumulate Bitcoin, But Bearish Pattern Forms

According to crypto analyst Ali Martinez, Bitcoin’s recent performance has invalidated a bearish head-and-shoulders pattern. However, the reversal has reignited bearish concerns, with the potential for a correction to at least $78,000. Martinez noted that Bitcoin has fallen below a key demand zone, where 1.77 million addresses acquired over 1.53 million BTC. This could force holders to sell some BTC to cut potential losses.

Key Resistance Levels Ahead

Martinez pointed out that there isn’t significant resistance ahead for Bitcoin, with only a minimal supply wall of 107,000 BTC between $104,700 and $105,770. However, a surge in selling pressure that pushes the cryptocurrency below the $92,000 mark could spell trouble, opening the door to a steep drop with little support until $74,000.

Cautiously Bullish Outlook

Despite the bearish concerns, Martinez shared a cautiously bullish outlook for Bitcoin from a technical perspective. The TD Sequential presented a buy signal on Bitcoin’s 4-hour chart, suggesting a potential price rebound if the price can hold the $93,500 support zone. Additionally, traders on Binance are leaning bullish on Bitcoin, with 61.28% of all traders with open positions betting that the price will go up.

Potential Price Rebound

Martinez noted that $35 million would be liquidated if BTC’s price rebounds to $98,600, suggesting that market makers may try to grab it. Similarly, there’s another $66 million liquidation zone above $103,300. However, the analyst emphasized that Bitcoin must reclaim the $100,000 support to invalidate the bearish outlook and set its sights on new all-time highs.

Conclusion

In conclusion, Bitcoin’s price drop below the $100,000 support level has sparked concerns among investors and analysts. While there are bearish concerns, Martinez’s cautiously bullish outlook suggests that a potential price rebound is on the horizon. However, the macro suggests caution, and Bitcoin must reclaim the $100,000 support to invalidate the bearish outlook. As of this writing, Bitcoin is trading at $94,500, a 3.3% retrace in the daily timeframe.

Source: Newsbtc.com

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